There is one common problem that individuals from different parts of the world are facing right now and that has something to do with every family’s financial stability which became more serious during the pandemic. When the people already found a way to be free from such a struggle, another problem rose which has brought more difficulties to billions of consumers worldwide since the economy is already affected. The small sum that many individuals receive from their paychecks cannot be sufficient anymore to fund their daily expenditures since the prices of basic commodities in the world market increased and are continuously increasing.
If this situation will not be controlled, then that will bring more burden to the commoner because they have low-salary jobs so they are greatly affected and this will push them to borrow money from various lenders. Pretty sure that they’ll deal with Forbrukslån or consumer loans, especially the ones that can offer them fast cash disbursement or those that can release the money on the same day. This is usually unsecured so the interest rate could be higher than other types of debts but I guess you’ll just have to give a blin-eye to that because it is more important to produce funding for food, medicine, and emergencies as well.
When more people are relying on such lending services offered by government and private financial institutions, it means that many of these consumers are struggling so they cannot manage to pay their monthly obligations. Life isn’t like this couple of years ago and everybody is doing fine but we need to survive for our family that’s why when payday loans are not available, especially if we don’t have a job or if the income is not stable, then we should have alternatives. We should know what other options are available so that we can get financial solutions that suit our needs.
Payment Plans
You are not the only person who is struggling financially and pretty sure that your current lender knows about this as well. So before taking out payday loans, I suggest you think of ways how you can make your situation more comfortable. We can start by coming up with a payment plan so consider how much you are earning, monthly expenses, and the amount that you can only repay to the lending company.
Let’s say that we are going to talk to the creditor and explain our financial status so that they can understand why you find it difficult to pay back the loaned amount. Pretty sure that the lender will accept your payment plan because this is better than going default which is a loss on their revenue and negative feedback on your credit report. When you have a good relationship with the lending firm and had been a client for a long time, then they will trust you with the payment plan that you are going to propose.
Credit Counseling or Financial Advisor
Some lenders won’t agree to your repayment plan but most of them will accept your request. Just in case that solution won’t work out, then you have to deal with nonprofit organizations or advisors that handle credit counseling. They can help in preparing a better repayment proposal and how you can manage to pay off your unpaid debt.
These people or institutions can be very helpful in negotiating with the creditors not only in planning your repayment terms. But they can also negotiate so that you can get lower interest rates to reduce the overall costs of your outstanding balance. Through these organizations, your debt with the lender will be settled but this time, you will be repaying the institution at a more comfortable rate and terms.
They may also provide you with additional funds with minimal interest. Sometimes, this type of service is even free of charge because most nonprofit institutions aim at helping individuals or families who lack resources.
Refinance Loan
Some of you have unpaid debts and these are adding up to your monthly expenditures. Sometimes, you even run out of cash because your monthly income is not enough to settle your obligations. Now, if your current lender offers to refinance, then you may apply for this so that you can consolidate and pay off your debts.
You can request a certain amount, use this to settle unpaid debts, and you’ll have a new account because the current ones will be closed. In this way, you will be able to start repaying a new debt with better repayment terms and lower interest rates. By the way, you should only refinance when it is to your advantage because it would be pointless when the costs would be higher.
Home Equity
If you are a homeowner, then your other option would be to consider your home equity and if this property has a high value, it would be enough to settle your outstanding balance. But again, make sure that the interest rate is affordable, and would be ideal to get a longer repayment term so that your monthly dues would be lower. In this way, it would be more affordable and can reduce the burden of settling your obligations every month.
You are sure employed and have a stable income so you are eligible. Maybe if the pandemic didn’t happen and there is no inflation in the global market, then you should not be struggling. Anyway, your home equity would be an ideal way to produce funds fast, though cash isn’t usually disbursed in a day since the process is quite longer than a payday loan.
But be very careful when incorporating home equities because your property would be at risk. Do not borrow funds that would be doubting to repay so that you won’t be facing the same issues again in the future.
Credit Union
If a payday alternative loan is offered by a federal credit union in your area, then you may also apply for this. Here, interest rates are usually lower and it is specifically designed to help employees with their request to borrow money.
These are only short-term debts and requests are usually in small amounts, too. Let’s say that you may borrow a maximum of $1,000 and you may pay this off within 6 months. The costs of this transaction are affordable, too, because 28 percent is better than other rates.
To avail of this program, you have to be a member of the credit union first. You just need to pay about $20 for the registration fee so pretty sure that you can manage this cost.
Credit Card Cash Advance
Consumers with credit cards can get cash advances. You just need to withdraw cash from the ATM and you can have funds very fast. Well, this is only applicable to credit card holders and only employed individuals are granted with this card from reputable credit card companies.
However, you should not be relying on this option if there are other alternatives. Indeed disbursing cash is not a problem and you can get it anytime you want to. But the charges are quite costly that’s why this must be used only for emergencies.
Paycheck Advance
Some employers allow their employees to apply for a paycheck advance. You have to apply for this through the company’s finance department. Once approved, you can get the money right away.
When it comes to the repayment, this will be deducted automatically from your paycheck with a minimal interest rate and the repayment period will depend on the policies of your employer. If the interest rate is low, then this could be a better option.
Pawnshop
If you have valuables, then go to the pawnshops. The interest rate varies so some are higher so choose wisely. However, the amount that they can grant you will be based on the value of the items that you would like to pawn.
You can pawn gold pieces of jewelry or any accessory. But today, even gadgets, vehicles, and home appliances are already accepted in the pawnshops.
